The Philippine Economic Zone Authority (PEZA) Board has deferred approval of the planned extension of the work-from-home (WFH) arrangement for its registered business enterprises (RBEs) from Sept. 12 this year to March 2023.

PEZA Deputy Director General Tereso O. Panga said during his first board meeting as officer-in-charge of the agency that the Board approved 62 items in the agenda and deferred two: WFH and the inclusion of logistics services in the Strategic Investments Priority Plan (SIPP).

“The Board agreed to subject these as soon as possible to a referendum once we get further clarification from the Department of Finance and the Board of Investments,” said Panga.

On the WFH arrangement, PEZA already approved in principle a memorandum extending the 70-30 onsite-WFH work ratio arrangement for its RBEs up to March 2023.

But the Board would like PEZA to revise its memorandum to adopt their inputs that the 30 percent WFH is a long standing policy of PEZA and not just a business continuity plan, a measure provided in the CREATE law during national state of calamity.

Panga said they are going to revise the memorandum before Sept. 12. Once approved by the Fiscal Incentives Review Board (FIRB), Panga said there will be no need to convene the board again for approval to formalize the 70-30 extension.

On Tuesday, Aug. 30, Panga said PEZA will send the formal request to the FIRB, which is co-chaired by DTI Secretary Alfredo E. Pascual, who is also chairman of PEZA.

Panga said he had earlier discussed with DOF Assistant Secretary Juvy C. Danofrata some issues including the waiver of penalty for PEZA firms that exceeded the 30-70 WFH-onsite work ratio and other matters with FIRB, Bureau of Internal Revenue, and the Bureau of Customs.

On ecozone logistics services, Panga explained they had been approving these activities under the old tax incentives regime,

but their incentives only include tax and duty free importation and zero VAT rating on local purchases.

This time, PEZA would like new ecozone logistics services firms to be eligible for the same incentives under CREATE.

BOI initially confirmed its unclusion under Tier 1 of the SIPP as support to export activities. “This will encourage their registration since these are critical ecozone supply chain as they cater exclusively to the requirements of export-oriented locator,” said Panga.

Meantime, the Board also approved 30 ecozone development projects and locator application projects with total capital investments of P8.685 billion. No details were provided on these projects.

Also approved by the PEZA Board were policy administrative and finance concerns.

Presiding for the first time at the PEZA Board meeting since he was named OIC, Panga shared that it was an honor and privilege. There were 10 board members, out of 13, who attended the four-hour meeting, all ex officio representing the BOI (DTI), DOF, National Economic and Development Authority, Department of Labor and Employment, Department of Environment and Natural Resources, Department of Public Works and Highways, Department of Science and Technology, Department of Energy, and Department of Interior and Local Governments.

“So glad to see a number of comebacking and esteemed members of the Board as they have been very supportive of PEZA and the ecozone industry,” said Panga.